Retirement Planning by Age: Helping Employees at Any Age
- Michelle Marsh
- Nov 10
- 3 min read
Retirement planning isn’t just for those nearing the end of their career; it’s a proactive process that benefits individuals at every stage of life. Whether your clients are in their twenties just starting out, juggling family and career in their forties, or preparing to leave the workforce, taking strategic steps can improve long-term financial security. This guide explores effective strategies by age group to help financial advisors confidently support employees from their first paycheck to their final retirement milestone.
Retirement Planning Milestones by Age Group
Ages 20-34: Laying the Foundation
Starting early offers a powerful advantage: time. The earlier clients begin saving for retirement, the more they benefit from compound interest.
Encourage younger clients to participate in employer-sponsored 401(k) plans and take advantage of employer matches. Education is critical: many young adults underestimate future retirement needs. Keep them engaged by illustrating growth projections and showing how small, consistent contributions add up.
Ages 35-44: Maximizing Growth
This period is often marked by rising incomes and expenses. Participants may juggle home purchases, childcare, and education costs. The challenge is balancing these priorities while maximizing retirement contributions.
Review retirement goals annually with clients, encourage incremental increases in contributions, and introduce tools such as retirement calculators or progress charts. Upping a 401(k) contribution by just 2% can have significant long-term effects. Sharing projections based on realistic growth rates helps individuals visualize their future.
Ages 45-54: Catch-Up and Course Correction
For many, retirement is closer than ever, and there may be anxiety about falling behind. Fortunately, there are specific tools for later starters. Because even at this stage no one is ever too late to start.
Catch-up contributions: Individuals over age 50 can make additional annual contributions to 401(k)s, boosting their savings substantially (IRS guidelines).
Investment strategy review: Advisors should help clients reassess their risk tolerance and asset allocation. Shifting some assets from growth-oriented investments to more stable options may help preserve wealth.
Ages 55+: Finalizing the Plan
As clients approach retirement, the focus shifts to preservation and income. This means evaluating Social Security, pensions, and withdrawal strategies.
Social Security and pension options: Advisors should walk clients through benefit amounts at different ages to identify the best claiming strategy.
Withdrawal strategies: Managing withdrawals to avoid running out of money is vital. Strategies like the 4% rule, annuities, and laddered CDs can help ensure steady income.
Addressing anxieties: Many clients fear they are “behind.” The DOL Top 10 Ways to Prepare for Retirement Booklet offers practical tips and reassurance.
Overcoming the “It’s Too Late” Myth
It’s common for older clients to feel overwhelmed or believe it’s too late to catch up. Here’s how advisors can empower them:
Use catch-up provisions: Highlight the substantial impact additional contributions can have in just a few years.
Asset allocation: Shift portfolios to reduce unnecessary risks, focusing on capital preservation.
Real-life examples: Share stories of clients who began planning later and still achieved financial security, illustrating that every step counts.
When discussing retirement age options, use the Social Security age chart as a visual tool to show the consequences of claiming benefits at different ages, helping clients make informed decisions.
Unlock Expert Retirement Support with RPCSI
Retirement planning isn’t one-size-fits-all, but the right partner can make all the difference. No matter the employee’s age or stage of life, RPCSI offers the experience, resources, and tailored solutions needed to help you in securing their financial future. By collaborating with RPCSI, you gain access to expert guidance, customized retirement plan design, and the support necessary to keep everyone on track.
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